Rather stay put and renovate than move? Lisa Salmon seeks some expert advice on the projects that promise the best returns.
Increasing numbers of homeowners are avoiding the expense of moving house by staying put and renovating.
In fact, the number of people choosing to do this has risen fivefold since 2013, according to a recent report by Hiscox Insurance - increasing from 3 per cent of households to 15 per cent, representing more than four million homes in the UK.
Planning applications have also risen by a quarter over the last five years according to figures from the Halifax, while Hiscox also found the average budget for home renovations was around £16,100 per project.
However, not every home-improvement project will automatically add value to a property.
“Nothing kills the value of a property more than doing cheap work in it,” says Ash Chawla, chief executive of the design/build company Duke of Design (dukeofdesign.co.uk).
“Estate agents have told me they’ve seen sellers with tears in their eyes, when they find out that construction work worth thousands of pounds hasn’t added a single penny to their home. We live in a world which has become very aware and knowledgeable. There are no shortcuts to creating value to your home.”
So, what does Duke of Design recommend? Here are five home improvements Chawla says could be a wise investment...
1. Conservatories
The simplest home addition is a conservatory, which Virgin Money research says can raise the value of your home by as much as 15 per cent if it’s included as part of an extension, or by 5 per cent if it’s just a simple conservatory.
Chawla says that using materials other than uPVC can help conservatories blend well with both modern and period properties. “A muted, more sophisticated palette of taupe and grey-painted wooden frames camouflages itself in a natural setting, and the reflective properties of glass help it blend into the outside space more easily,” he says.
2. Extensions
Estate agents surveyed by Hiscox believe the best way of spending money on your home is by having an extension built, saying the addition of a new bedroom could boost the average home’s value by 11.2 per cent. They reckon a new kitchen, meanwhile, will typically increase a home’s value by 5.5 per cent (or £12,400 based on an average UK house price of £226,071).
A single storey extension can be built in as little as three weeks once planning permission is granted, says Chawla, who suggests an average sized £30,000 single-storey rear kitchen extension on a £500,000 home can lead to a profit of £30,000-£35,000. “Aside from a rise in property value, you also benefit from a stunning home environment with added usable space,” Chawla adds.
3. Garden landscaping
“Often overlooked, the garden can become the hub of home life and can work seamlessly with your home,” says Chawla.
For family-sized homes, ensure the outdoor space is suitable for the growing needs of a family with low-maintenance planting and landscaping, while a small courtyard garden at a city apartment may appeal to younger working couples. The cost of landscaping a garden can be as little as £2,000, but Chawla says spending a little more can lead to a potential return of £40,000 on a £500,000 house.
4. Parking
Most towns and cities have a parking problem, Chawla points out. “By providing viable parking facilities, you can increase your property price dramatically,” he promises.
You could either convert land at the front or side of your property to add a driveway or parking space, or add a garage - possibly by converting an existing outside building, if there’s suitable access, or by building a garage extension. Full garage conversions commonly add up to 8-10 per cent to your property value, says Chawla, particularly in areas where parking is a premium.
5. Loft and basement conversions
The Hiscox report says loft extensions are the most popular planning request, and Chawla says loft conversions are usually less troublesome than basement conversions. They don’t always require planning permission, although they do need to meet building regulations to be classed as a room. The Nationwide Building Society says the average cost to convert an attic is around £20,000, which rises to approximately £35,000-£45,000 if you’re creating a dormer loft with double bedroom and bathroom.
Just boarding out the loft for storage is unlikely to make much impact on the price of your property, and Chawla stresses: “If financial gain is your goal, converting the loft into a usable room is the way to go.
“The benefits of adding an additional bedroom to your property can be huge - loft conversions can add as much as £65,000-£75,000 to your property value.”
An alternative is to add a basement conversion if space allows, but Chawla says this is a complicated procedure and potential problems, such as water ingress and foundation issues, can be major concerns.
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